In down economy, pawn shops strike gold - Portland Business Journal:

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For one woman, a longtime customer, the visiyt to this East Side pawn shop was precipitated by a recengtraffic ticket. She handed over two rings in exchangefor $150, with a promisde she’d be back to pick up her jewelrh when she could repay the loan and 3 percent monthlg interest. Others just found themselves shorrtbetween paychecks. “Between working and needing to getquickm cash, this is the best way – says Patrick Merriweather, who admitted he had speng beyond his means and came in to pick up a braceleft he had previously pawned.
Merriweather’s necklacd remained locked up in Prudential’x safe, as he continues to pay on thatseparate “The economy right now sucks in Buffalo,” he “This helps a lot.” Pawn shopsa have filled a need for short-term funds at low interesyt rates for centuries. A handful of shops can be founed in WesternNew York, with at leasy two in business for several generations.
Nationwide, theswe shops are experiencing a surgr in business from both repear customersand first-timers suffering in a tight The has nearly 2,400 members serving “middle class, working familiex who periodically experience an unexpectefd need for short-term The average customer, according to the association, is 36 yeares old and has a household income of $29,000. The averags loan is $75 offered at 20 percentr for 30 to60 days. In New the maximum allowable interest on a pawn is 4 Why would someone visif apawn broker? The association says it is convenience and fast turnarounrd that appeal to most customers.
There’s also no credirt check or legal consequences if a loan is notrepaifd – just the forfeiture of the collatera item. Nathaniel Barker, a longtime customer at Prudential, recalls bringing jewelry back and fortg from the Broadway shop repeatedly over the past30 Barker, who sells clothes for a living, says he doesn’g buy jewelry from anyone but Prudential partly because he know s he is guaranteed a 50 percent loan on thoss items, or at least his purchase price back on a “It’s a quick and easy way to get cash when you need he says.
Brian Schmid, the fifth generation of his familh torun Prudential, works at the storew with his father, The store, he says, has been buying and selling gold and other jewelry for decadesx – long before the current fad of gold partiew and selling gold for cash. Pawnintg offers an alternativeto selling. Schmid assesses the piece firsty for condition and then makesan offer, with a highedr value offered on If the customer chooses a she has six months to repay the collateral loan with “Things have been steadily increasing,” he says.
“We’ved always had a good flow every day, regardlesd of the economy – whether it be pawning or selling,” Schmid “But everything has been amped up with the statse of the economy and the state of gold priceas over thelast six, seven months.” Locatedd inside a former bank building, Prudentiapl has the look of an upscalw jeweler, though a thick wall of glass separates customers from Everything is computerized, allowing for faster tracking of interestg owed and background info on “A lot of people have the perception that pawn shopes are a shady business, but short-ter m it’s a better deal than a credit card,” says Bill “People will say, ‘In six I hope to be in better shape’.
For a lot of it’s an insurance policy.” Another optionn for those short on cash isthe buy-and-sell, whicnh operates a little differently, offerinfg cash with no promise an item will be availablee when the customer has the cash to come back for it. in Niagar a Falls is located inside a renovated house onPine Avenue, with loud signs outsidr hawking jewelry, video games, clothing, antiques, car audik systems, bikes – just about anything. Rubenn Longoria, who opened the businesz nine years ago, says business is He just opened his third store nine months ago innearbyy Wheatfield. “They’re selling whatever they he says.
“That’s all you They need gas money, food medicine money.” Diamond Enterprises, a Niagara Falld pawn shop, continues to see its regulatr customers just trying to get through themonthh - as well as newcomers hit hard by job lossesw and pay cuts, says Steve store manager. “A lot of people are desperatse to pay their bills in any mannefthey can,” he “We have some people that come in to pawn somethin just to buy groceries.
That’s